Monique Barbut Chief Executive Officer 1818 H Street, NW Washington, DC 20433 USA and Chairperson Tel: 202.473.3202 Fax: 202.522.3240/3245 E-mail: [email protected] February 19, 2010 Dear Council Member, The World Bank as the Implementing Agency for the project entitled: Egypt: Alexandria Coastal Zone Management Project (ACZM) under the Regional: World Bank-GEF Investment Fund for the Mediterranean Sea Large Marine Ecosystem Partnership, Tranche 1, 1st Allocation, has submitted the attached proposed project document for CEO endorsement prior to final Agency approval of the project document in accordance with the World Bank procedures. The Secretariat has reviewed the project document. It is consistent with the project concept approved by the Council in August 2006 and the proposed project remains consistent with the Instrument and GEF policies and procedures. The attached explanation prepared by the World Bank satisfactorily details how Council’s comments and those of the STAP have been addressed. We have today posted the proposed project document on the GEF website at www.TheGEF.org for your information. We would welcome any comments you may wish to provide by March 19, 2010 before I endorse the project. You may send your comments to [email protected] . If you do not have access to the Web, you may request the local field office of UNDP or the World Bank to download the document for you. Alternatively, you may request a copy of the document from the Secretariat. If you make such a request, please confirm for us your current mailing address. Sincerely, Attachment: Project Document Copy to: Country Operational Focal Point, GEF Agencies, STAP, Trustee REQUEST FOR CEO ENDORSEMENT/APPROVAL PROJECT TYPE: Full-sized Project THE GEF TRUST FUND Submission Date: December 1, 2009 PART I: PROJECT INFORMATION Expected Calendar (mm/dd/yy) GEFSEC PROJECT ID: 2602 Milestones Dates GEF AGENCY PROJECT ID: 95925 COUNTRY(IES): Egypt Work Program (for FSPs only) 06/26/2009 PROJECT TITLE: Alexandria Coastal Zone Management Agency Approval date 04/29/10 GEF AGENCY(IES): World Bank, Implementation Start 02/01/2010 OTHER EXECUTING PARTNER(S): EEAA, Egypt Mid-term Evaluation (if planned) 08/01/2012 GEF FOCAL AREA(s): International Waters Project Closing Date 02/01/2015 GEF-4 STRATEGIC PROGRAM(s): IW-SP2 - Reducing nutrient over-enrichment and oxygen depletion form land-based pollution of coastal waters in LMEs consistent with the GPA NAME OF PARENT PROGRAM/UMBRELLA PROJECT: INVESTMENT FUND FOR THE MEDITERRANEAN SEA LME PARTNERSHIP A. PROJECT FRAMEWORK Project Objective: Improve the institutional mechanisms for sustainable coastal zone management in Alexandria in particular to reduce land-based pollution to the Mediterranean Sea. Indicate whether Expected Expected GEF Financing1 Co-Financing1 Total ($) Project Investment, Outcomes Outputs ($) a % ($) b % c=a+ b Components TA, or STA2 1. Planning, TA, STA, Increased Commitment 1,982,000 64 1,100,000 36 3,082,000 Institutional Investment capacity by by relevant Capacity and the relevant agencies Monitoring * entities to towards monitor and sustainable manage the coastal zone coastal zones management in and around reflected in Alexandria in medium term a sustainable plans manner Major new investments decisions taken during the lifetime of the project by relevant agencies utilize sustainable coastal zone management principles according to the CZM plan 1 CEO Endorsement Template-December-08.doc 02/19/2010 2:42:34 PM At least 3 public consultations on the preparation and adoption of the CZM plan for Alexandria are held by 2015 (process) 2. Pollution TA, STA, (i) 15% 4,625,000 1 645,211,111 99 649,836,111 Reduction Invstment Improvement reduction of in the water BOD within quality of the area of Lake Mariout influence of and the project1 subsequently the water Increase in quality of the percentage of Mediterranean surveyed Sea hot spot population of El-Mex noticing an Bay improvement in daily lives (in terms of (ii) Efficiency improved of pollution water reduction quality, measures fishing quantity, and quality) 3. Project TA, STA (i) A water 543,000 42 692,182 58 1,235,182 Management Completion quality and and monitoring Monitoring & systematic use network Evaluation of water measuring monitoring project network impacts fully operational (ii) Evaluation and and integrated replication with the strategy of the EEAA project results database by 2011 (process) Report on “Lake 1 The baseline for BOD level in the area of influence of the project, and the reduction target will be confirmed in light of the results of the feasibility study. 2 CEO Endorsement Template-December-08.doc 02/19/2010 2:42:34 PM Mariout: Results and Lessons Learned” published and disseminated by 2015 (process). Participation in IW learning activities Project’s details and results published on the website of EEAA, in line with the IW Learn template Replication strategy prepared and adopted by 2015 (process) 4. Project management** 180,000 692,182 872,182 Total Project Costs 7,150,000 647,003,293 654,153,293 1 List the $ by project components. The percentage is the share of GEF and Co-financing respectively of the total amount for the component. 2 TA = Technical Assistance; STA = Scientific & Technical Analysis. * The Monitoring function under component 3 applies to all project interventions including evaluation and reporting whereas the Monitoring function in component 1 is only intended to monitor the water quality of Lake Mariout and the Mediterranean Sea. In addition, the monitoring equipments are different for each component and require a different set of skills for their operation ** Project management costs are embedded in Component 3, and therefore the estimated PM costs shown are inclusive and should not be added on top of the total cost. 3 CEO Endorsement Template-December-08.doc 02/19/2010 2:42:34 PM B. SOURCES OF CONFIRMED CO-FINANCING FOR THE PROJECT (expand the table line items as necessary) Name of Co-financier Classification Type Project %* (source) Government Contribution National In-kind + 611,903,293 94.5 Government budget IBRD Multilateral Soft loan 2,449,689 0.3 Agency Multilaterals Multilateral Soft loan 7,614,161 1.1 Agencies Bilaterals Bilateral Soft loan 10,656,149 1.6 Agencies Egyptian industries Private Sector (select) 14,380,000 2.2 Total Co-financing B647,003,293 100% * Percentage of each co-financier’s contribution at CEO endorsement to total co-financing. C. FINANCING PLAN SUMMARY FOR THE PROJECT ($) Project Preparation Project Total GEF 350,000 7,150,000 7,500,000 Co-financing 20,000 647,003,293 647,023,293 Total 370,000 654,153,293 654,523,293 D. CONSULTANTS WORKING FOR TECHNICAL ASSISTANCE COMPONENTS: Estimated GEF Co-financing Project total Component person weeks amount($) ($) ($) Local consultants* 60 105,000 0 105,000 International consultants* 26.5 80,000 0 80,000 Total 86.5 185,000 0 185,000 * Details to be provided in Annex C. E. PROJECT MANAGEMENT BUDGET/COST Total Estimated GEF Cost Items person amount Co-financing Project total weeks/months ($) ($) ($) Local consultants* 51 person week 88,000 0 88,000 International consultants* 51.5 person week 155,000 0 155,000 Office facilities, equipment, 200,000 692,182 892,182 vehicles and communications* Travel* 50,000 0 50,000 Others** (meetings, workshops) 50,000 0 50,000 Total 543,000 692,182 1,235,182 * Details to be provided in Annex C. ** For others, it has to clearly specify what type of expenses here in a footnote. 4 CEO Endorsement Template-December-08.doc 02/19/2010 2:42:34 PM F. DOES THE PROJECT INCLUDE A “NON-GRANT” INSTRUMENT? yes no (If non-grant instruments are used, provide in Annex E an indicative calendar of expected reflows to your agency and to the GEF Trust Fund). G. DESCRIBE THE BUDGETED M &E PLAN: EEAA will be responsible for monitoring the progress of the Project, in collaboration with the Alexandria EEAA Regional Branch Office (RBO). The detailed arrangements for M&E2 including indicators are included in the Project Appraisal Document in Annex 3and in the Operations Manual of the project management unit. EEAA will report to the Bank in quarterly and annual progress reports. A M&E specialist will be responsible for preparing the periodic Project progress reports, including reporting progress on general implementation and progress against agreed indicators (mid-term review & completion report). The M&E specialist will be assisted by an M&E consultant, to be contracted and paid under the project funds as part of component (3) activities. PART II: PROJECT JUSTIFICATION: In addition to the following questions, please ensure that the project design incorporates key GEF operational principles, including sustainability of global environmental benefits, institutional continuity and replicability, keeping in mind that these principles will be monitored rigorously in the annual Project Implementation Review and other Review stages. A. STATE THE ISSUE, HOW THE PROJECT SEEKS TO ADDRESS IT, AND THE EXPECTED GLOBAL ENVIRONMENTAL BENEFITS TO BE DELIVERED: Background: Degradation of water quality due to land-based pollution is a major problem in the Mediterranean coastal areas. The Strategic Action Plan for the Mediterranean3 has identified several “hot spots and sensitive areas” on the northern coast of Egypt, which for several decades have been experiencing a continuous increase in population, development, and environmental degradation. Two of these “hot spots” are located in Alexandria, namely El-Mex Bay and Abu-Qir Bay. Please see attached map. Lake Mariout is one of the major sources of conveyance of land based pollution to the El-Mex Bay. According to the Transboundary Diagnostic Analysis (TDA) for the Mediterranean Sea, the pollution load reaching the Mediterranean Sea via the two hot spots in the Alexandria area are significant with more than a third of the total Biochemical Oxygen Demand and Chemical Oxygen Demand discharges in the area.